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Long-Term Renewable Energy and RECs RFP (169)
Renewables RFP (44)
Standard Products RFP (45)
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Long-Term Renewable Energy and RECs RFP
Does energy need to be delivered to the grid under the Long-Term Master Agreement or it possible to deliver to the distribution system? Would a facility under a ComEd POG rate be precluded?
Is there one Part 1 Proposal per Project or per Bidder?
There is one Part 1 Proposal per facility or Project. A Bidder may submit multiple Part 1 Proposals, one for each of multiple facilities or Projects.
Are there any concerns that the use of the ISDA Master Agreement may affect participation in the RFP?
The tailoring of the ISDA Master Agreement conforms with Appendix K (which are the Supplemental Recommendations filed by the Illinois Power Agency and approved by the Illinois Commerce Commission). We are unaware that this form of contract would affect participation in the RFP.
Is the ISDA Master Agreement a contract for physical deliveries of energy? If so, will there be a Power Annex attached to the ISDA Master Agreement?
This contract is for a fixed for floating price energy swap, not for physical deliveries of energy, and thus the Power Annex will not be included with the ISDA Master Agreement. This contract will however require delivery of associated RECs in the ComEd GATS and M-RETS accounts.
What is the Pnode ID used for purposes of determining the float price under the contract?
This information is provided in the Sample Confirmation to the ISDA Master Agreement. The Pnode ID is the ComEd Zone in the day-ahead market, which is 33092371.
The Illinois Act has a 75% wind target for the procurement of renewable resources. Will this resource type preference also apply to this long-term procurement?
Yes. Please see Appendix K, the Supplemental Recommendations filed by the Illinois Power Agency as part of the procurement plan for this long-term renewables RFP (page 2):
“The procurement process for Long-Term PPAs, on a stand-alone basis, will be designed and conducted in accordance with Section 16-111.5 of the Public Utilities Act and Section 1-75 of the Illinois Power Agency Act and the preferences set forth in Section 1-75(c) of the Illinois Power Agency Act shall be applied to the selection process (e.g., “[t]o the extent it is available, at least 75% of the renewable energy resources . . . shall come from wind generation;” it shall be “cost-effective” as defined in that Section; the locational preferences shall be applied as set forth in that Section). 20 ILCS 3855/1-75(c).”
Under the ISDA Master Agreement, will ComEd be posting margin?
No. ComEd will not be posting margin. Please see Appendix K, the Supplemental Recommendations filed by the Illinois Power Agency as part of the procurement plan for this long-term renewables RFP (page 6). Appendix K states that the contract will be a non-margining contract as long as the Contract Value exceeds the Around-The-Clock Value, which defines the circumstances under which ComEd would post margin. The Commission approved Appendix K as part of its Order on this procurement event.
What percentage of solar photovoltatics will be procured? What is the location priority for this procurement event?
There will be a target percentage of solar photovoltaics that will be announced as soon as practicable. Starting on June 1, 2011 (and thus during the period covered by the ISDA Master Agreement) the locational preference is for Illinois and its adjoining States over other States. The adjoining states are Wisconsin, Iowa, Missouri, Kentucky, Indiana and Michigan. Please note that for this procurement there is no longer a specific locational preference for Illinois alone.
For solar energy, are behind-the-meter installations able to bid in this RFP?
The draft ISDA Master Agreement requires that the energy be delivered to the grid. It is our understanding that behind-the-meter installations would not be able to meet this requirement.
Do all bidders have to provide a Pre-Bid Letter of Credit or does it depend on the size of the Project?
All Bidders are required to post a Pre-Bid Letter of Credit in an amount of $0.50 times the Annual Contract Quantity times 3. Please see Section V.2 of the RFP Rules, posted here: http://www.comed-energyrfp.com/ltdocuments.asp
Posted collateral under the ISDA Master Agreement must be in the form of cash or a letter of credit. Will you accept a corporate guaranty?
There is no unsecured credit under the draft ISDA Master Agreement and the use of corporate guaranties is not contemplated under the ISDA Master Agreement.
When are the Proposals due?
It is anticipated that the Part 1 Proposal will be due at noon (Central Prevailing Time or “CPT”) September 13, 2010, that the Part 2 Proposals will be due at noon (CPT) on September 24, 2010, and that the Bids will be due between 10 AM and noon on September 30, 2010.
Is the amount required for the Pre-Bid Letter of Credit $100,000?
No. Our understanding is that the RFP for the Ameren Illinois Utilities requires a pre-bid security amount of $100K. The RFP for ComEd requires a pre-bid security in an amount of $0.50 multiplied by three times the Annual Contract Quantity up to a maximum of $2.1 million. Please see Section V.2 of the RFP Rules.
When will the Pre-Bid Letter of Credit be available in Word format? We need this document to prepare our Proposal.
The Pre-Bid Letter of Credit will be posted in Word format no later than September 7, 2010. However, we understand your concern and we are in process of arranging for an earlier posting. We will advise you of an earlier posting if it occurs.
When will the Part 1 form be available in Word format so that bidders can prepare their Proposals?
We will issue the Part 1 Form in Word format on September 7, 2010, and earlier if at all feasible. You can find the calendar here: http://www.comed-energyrfp.com/calendar.asp
Was the accelerated schedule adopted?
The accelerated schedule has not been adopted and the final documents are expected to be available on September 7, 2010. The schedule is posted here: http://www.comed-energyrfp.com/calendar.asp
Please confirm whether or not the statutory cap on consumer rate increases in connection with the purchase of renewables is applicable to the amounts paid under the Long-Term Renewable Energy and RECs RFP. If it is applicable, how will it be applied?
On November 9, 2009, the IPA filed Supplemental Recommendations for the Procurement Plan supplementing or modifying the IPA’s prior proposal to procure energy and renewable energy credits on a long-term basis. The Illinois Commerce Commission ("ICC") approved Appendix K. The Motion for leave to file the Supplemental Recommendations states: "The REC portion of the procurement will count toward the RPS requirements and bill-impact cap set forth in Section 1-75(c) of the Illinois Power Agency Act. Id." (p. 2, item 6c).
The manner in which the bill-impact cap will be applied is specified in Appendix K, under the item "Application to the RPS" (pp. 2-3).
Further, the Procurement Administrator will announce shortly a Budget for the long-term RFP. The evaluation and selection of bids in no case will result in the procurement of an aggregate quantity that exceeds the Target of 1,400,000 MWh annually or that combine to cost more than the Budget.
Do you expect that a prospective bidder that provides project information may not continue the process by providing a bid in the form of a price because the final contract form will not be available before the date to provide project information?
We expect the final documents to be available on September 7, 2010, one day before the Part 1 Window opens and Bidders are invited to provide project information.
When will the Part 1 and Part 2 Windows open? When will the final documents be available?
The Part 1 Window is from September 8, 2010 to September 13, 2010. The Part 2 Window is from September 21, 2010 to September 24, 2010. Final RFP documents and the Master Agreement are expected to be issued on September 7, 2010. The calendar for the ComEd Long-Term RFP can be found here: http://www.comed-energyrfp.com/calendar.asp
The draft documents require suppliers to put a firm Annual Contract Quantity and a firm Applicable Percentage in the Part 1 form. It is difficult for suppliers to commit to a quantity at such an early stage in the process. Will you consider revising the RFP documents to allow suppliers to submit a quantity with their bid?
Although we will require that the Bidder specify the Annual Contract Quantity and Applicable Percentage in the Part 1 Form, we anticipate revising the RFP documents to allow the bidder to modify or amend the Applicable Percentage and the Annual Contract Quantity on the bid form. Such revisions will be reflected in the final RFP documents expected to be posted on September 7, 2010.
Will suppliers be able to bid a minimum quantity (as well as target quantity) of megawatt hours per year?
The Draft RFP Rules, posted on August 24, 2010, provide that a supplier may specify a Minimum Quantity for a Project (see Paragraph IV.3.3). The Minimum Quantity would represent the smallest quantity of RECs and associated energy for which the Bidder is willing to enter into the Long-Term Master Agreement for the Project at the price specified in the Bid.
Our understanding is that the base ISDA Master Agreement does not contain a definition for renewable energy credits. But the Sample Confirmation references the ISDA Master for both the energy swap and the REC purchase and sale. In which document is the REC product defined?
Please see the definition section of the Confirmation, which states: “’REC’ means a renewable energy certificate, credit or other transferable indicia indicating the generation of a MWH of energy from a Renewable Energy Resource, including all of the environmental attributes associated with the generation of that electricity.”
What is to be included in the Part 1 Proposal?
The items to be included in the Part 1 Proposal are described in Article IV of the Draft RFP Rules as well as in Appendix 2 to the RFP (the Part 1 Form). Both documents were posted to our web site on August 24, 2010.
Does the ComEd Long-Term RFP Workshop to be held on August 31, 2010 conflict with the IPA’s 2011 Plan Workshop on August 31st?
A workshop for public comments on the Draft 2011 IPA Procurement Plan and a workshop to discuss the Draft ISDA Master Agreement for the 2010 long-term renewable energy and RECs RFP are both being held on August 31, 2010. The first workshop will take place in Springfield while the second workshop will take place in Chicago. We apologize for any inconvenience caused by both workshops being held on the same day.
Can you confirm that the intent of the ISDA Master Agreement is to designate each renewable generation source that will be providing service under the agreement?
The intent is for each generating unit (tied to a revenue quality meter) to be identified in a separate confirmation should one bidder have multiple bids for multiple generating units approved by the Commission. The remainder of your submission appears to be comments rather than questions. We will consider your comments along with other comments on the Draft ISDA Master Agreement.
If a bidder has or will have more than one generating project with the same technology, all located within Illinois, will the bidder be permitted to identify two or more such projects in a single bid and then, if selected as a winning bidder, meet the delivery obligation from the output of one or more of the projects identified in the bid?
A bidder that has more than one generating project (each project being tied to a revenue quality meter) will submit one Proposal for each generating project. Such a bidder also will submit one Bid for each generating project, identifying for that particular generating project the bid price, the Annual Contract Quantity, the Minimum Quantity, and the Specified Percentage. If the Procurement Administrator recommends one or more Bids to the Commission and the Commission approves these Bids, the bidder would execute Confirmations under the ISDA Master Agreement for the particular generating projects for which Bids were approved. The bidder will not be permitted to identify the projects after the bids are approved.
Is the "Resource Factor" (page 1 of Schedule 2 to Credit Support Annex) the same as the "Resource Value" (page 1 of Confirmation Schedule)?
Yes, resource factor is the same as resource value; thank you for bringing this inconsistency to our attention. The Procurement Administrators will calculate the resource factors and announce these to the bidders in advance of bidding.
Is there just one price benchmark for all resource types, or is there a separate benchmark for solar?
The Procurement Administrator, in consultation with the IPA, the Procurement Monitor, and the ICC Staff will develop confidential benchmarks to protect consumers that will be approved by the ICC for the resources procured under this solicitation. The benchmarks will be used to evaluate bids and to reject bids that exceed the benchmarks. Additional information regarding the benchmarks is confidential.
Is there a conference call number for the workshops?
The workshops are in-person meetings.
What are the times and location of the Chicago Workshops on August 30-31 and September 1, 2010 for the Long-Term Renewable Energy and RECs RFP?
The Long-Term Renewable Energy and RECs RFP instruction I.3.2 requires applicants to submit in Microsoft Word format, but the document posted is in Adobe. Can you please forward the requisite documents in Word so we can insert the appropriate information?
The Microsoft Word version of the Part 1 Form will be provided no later than September 7, 2010 and earlier if feasible.
Is its true that ComEd will not hold collateral in the form of cash under the ISDA Master Agreement? Or is it that ComEd will not post collateral under the ISDA Master Agreement? For cash collateral provided to ComEd, please confirm if there is an option for the collateral to be held either by ComEd or by its custodian?
You may be referring to a statement made during the bidder information call that ComEd will not post collateral under the contract. Only the Seller is required to post security under the terms of the Draft ISDA Master Agreement. If the Seller chooses to post collateral in the form of cash, under the terms of the Draft ISDA Master Agreement, the Seller has the option for the cash to be held by ComEd or by its Custodian. If cash is held by ComEd, no interest is paid or fees collected. If cash is held by the Custodian, ComEd will pay to or collect from the Seller the amount of interest net of all fees. ComEd would collect from the Seller if fees exceed the amount of interest. Please see section (g) of Paragraph 13 of the Collateral Support Annex. For its Custodian, ComEd will use a Qualified Institution meeting the requirements as defined in Paragraph 13 to the Credit Support Annex section (o). This institution will be a large commercial bank.
Will the Seller under the ISDA Master Agreement have to post three-years worth of performance assurance as soon as the ISDA Master Agreement is executed?
Under the ISDA Master Agreement, ComEd may require the Seller to provide performance assurance for the amount of the Seller's exposure. The Seller's exposure includes the energy exposure as well as the REC exposure. The REC exposure is equal to $5 multiplied by three times the Annual Contract Quantity. ComEd intends to make a request for the REC exposure by noon on the business day following the day the Confirmation is fully executed. The Confirmation is expected to be fully executed no later than three business days after an approval by the ICC of the results of the procurement event for long-term renewable energy and RECs. Following such a request, the Seller must post the required collateral by the close of business on the next business day.
If a supplier wins a contract for unit "A", will it be able to assign the obligation to unit "B" some time during the term of the contract?
The transaction contemplated by the contract encompasses two items: 1) a fixed price for floating price energy swap; and, 2) the delivery of RECs, both tied to the production of the generating unit identified in the Confirmation. There are no provisions that would allow the assignment to another generating unit during the term of the contract. Please note that there is currently a comment process on the Draft ISDA Master Agreement and you are free to propose a provision to this effect as a comment. The invitation to comment on the contract is posted here.
Does a bidder need to be able to point to a specific project from which it will generate the RECs, or can it provide them from the market?
Yes, you need to be able to point to a specific project. The transaction contemplated by the contract encompasses two items: 1) a fixed price for floating price energy swap; and, 2) the delivery of RECs, both tied to the production of the generating unit identified in the Confirmation.
Is the Microsoft Word version of the ISDA Master Agreement posted in order to submit comments?
The contract is posted to the Long-Term Renewable Energy and RECs Documents pageunder the heading ISDA Master Agreement (DRAFT) (August 13, 2010). Your proposed changes should be incorporated in the Schedule to the Master Agreement, Paragraph 13 of the CSA, Schedules 1 and 2 of the CSA, or in the Sample Confirmation, all of which contain the specific terms of the contract tailored for this transaction. All of these are posted as Microsoft Word documents.
In what format should comments to the proposed ISDA Master Agreement be submitted?
The exclusive method for submitting comments is electronically in Microsoft Word with tracked changes (redline markup of a document). You are strongly encouraged to provide an accompanying document with explanatory notes or to add an explanation beside each tracked change. Please submit your comments by email to the Procurement Administrator at pa@ComEd-EnergyRFP.com. Please provide phone and email contact information in the event that clarification is needed regarding your comments. More information on the comment process is available in our invitation to provide comments, which is posted to the Long-Term Renewable Energy and RECs Documents page.
Is it correct that the transaction is with margining by generators only under the draft Master Agreement used for the ComEd Long-Term RFP?
That is correct.
Would ComEd consider a REC-only fixed price offer?
ComEd may not consider a REC-only fixed price offer. The Procurement Plan approved by the Illinois Commerce Commission specifies that the transaction will be for renewable energy and RECs. It also specifies that a single bundled price will be bid for both energy and RECs.
Will the Long-Term RFP have a Solar REC component? If yes, what is the anticipated target? What is the anticipated contracting date?
The anticipated start of delivery under contracts from the Long-Term RFP is anticipated to be June 1, 2012. The Illinois Power Agency Act was amended so that a specified amount of renewable energy resources would be procured from photovoltaics starting in 2015. Bill HB6202, expected to become law, would further amend this provision to allow for a ramp-up to the photovoltaic requirement starting in 2012. The Commission Order regarding this Long-Term RFP provides that it will be conducted in accordance with the preferences of the Illinois Power Agency Act. The Draft Long-Term RFP is expected to be posted on August 24, 2010 and the documents will at that point provide information regarding the way in which the preferences of the Illinois Power Agency Act will be recognized in the Long-Term RFP, including any preferences for solar.
Would a project that comes on line in the fourth quarter of 2012 be eligible to offer into this RFP 40,000 RECs in the first year and 100,000 RECs in each subsequent year of the contract?
The Draft Long-Term RFP is due to be released on August 24, 2010 and would set out the conditions for eligibility.
We also draw your attention to the Draft ISDA Master Agreement, which was posted on August 13, 2010. The Draft ISDA Master Agreement provides for a constant quantity of energy and associated RECs in every year of the contract. The Draft ISDA Master Agreement addresses potential short-falls in RECs and energy in Paragraphs 3 and 4 of Section B of the Confirmation.
Is any information available regarding the workshops scheduled in Chicago?
The workshops are currently expected to be held on August 30, August 31, as well as September 1 in Chicago. It is expected that the workshop on August 30 will be a bidder meeting on the terms of the Long-Term RFP for both the ComEd and Ameren portfolios and it is expected that the meeting would start early in the afternoon. This tentative schedule is subject to availability of a suitable venue and we expect to confirm the schedule shortly. Please stand by for an announcement early in the week of August 16.
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